Protection Types

Life Assurance

What would happen to your family in the event of your death?

 

A life assurance plan will pay out a tax free lump sum in the event of death during the specified term.  Without a life insurance policy, your loved ones could struggle to pay the bills and maintain their standard of living. It’s important to understand

the different types of cover available.  Life insurance pays out when you die. It’s easy to understand, isn’t it?  Unfortunately, life cover is not that simple and there are big differences between the types of cover and the size of the premiums.  


Criticall Illness Cover

Critical illness is something that, quite understandably, most of us would prefer not to talk about. Getting the right critical illness cover in place is the only way the subject can be avoided with total peace of mind!!

 

The policy is designed to repay debt, pay for medical care or just enhance your life after suffering from a serious illness.  Critical illness insurance pays out, typically a tax-free lump sum on diagnosis of contracting one of number of serious illnesses listed on your policy. 


Family Income Benefit

This is a form of life assurance that will provide a tax free income for the remainder of the term as opposed to a tax free lump sum.

 

This can be used if you want to guarantee a tax-free income for your family for a specific time in the event of a death.  It is used to support your spouse, partner or any children by replacing the income that would of otherwise be received. 


Whole of Life

As the name implies, it is a policy that will cover you for the whole of your lifetime - it is usually more expensive than normal life assurance due to the nature of the plan.  There is no time period in which you have to die to receive the funds; it will guarantee to pay out upon your death whenever it occurs.

 

This type of plan is generally used to: 

  • Provide a lump sum on death
  • Fund expenses on death
  • Fund an Inheritance Tax (IHT) payment
  • To protect dependants against loss of financial support in the event of death

 

Income Protection

Income Protection is designed to replace loss of income due to illness or injury.  The benefit is paid tax free and cover is usually available up to 60% of salary or net profits if self employed. 

 

The benefit will commence after a deferred period and will pay until the insured recovers and goes back to work, dies or when the policy expires (usually retirement).

 

This policy is particularly suitable for the self-employed, who would not receive any replacement income if they cannot perform their occupation. 

 

Private Medical Insurance

Private Medical Insurance is to provide cover for the costs of medical expenses.  It provides access to private medical treatment without being wholly dependent upon the National Health Service (NHS).

 

Benefits are: 

  • Reduced waiting times
  • Choice of hospital and treatment
  • More choices regarding treatment times
  • Tailored after care whiich could result in a quicker recovery 

 

Business Protection

There is also a strong need for a business to have adequate protection from adverse financial situations.

 

Business Protection can be used to protect against falling profits, if a skilled engineer were to become ill, or one of the directors were to suddenly die.  It could also be used to pay the spouse of a deceased partner.

 

Business Protection would also include setting up a group scheme for your employees if as an employer you wanted to provide some additional benefits to your workforce. 


Trust Planning

When setting up your protection plans we will advise you on the options of placing the policy in trust.  We can also review polices that have been previously arranged and in some cases set up a trust in retrospect.

 

Here are some of the associated benefits of placing your policy in trust:

  • The proceeds will not be subject to IHT
  • Certainty over who receives the benefits
  • No delays on benefit payout

 

 

Please note that the Financial Conduct Authority does not regulate trust planning and inheritance tax advice. 

 

General Insurance

General Insurance will cover many forms of protection, some of the areas we can help are:

  • Buildings & Contents
  • Landlords Cover
  • Accident, Sickness & Unemployment

 

This type of insurance is also wise to review at least annually as they are usually annual contracts.  This will ensure that the cover is suitable and remains competitive in cost.

 

 

PLEASE BE ADVISED THAT WE DO NOT OFFER ADVICE OR ANY SERVICES RELATING TO CRYPTO ASSETS OR INVESTMENTS.